The Organizational Structure Of The Reserve Bank Of India

This role is achieved through the implantation of the monetary policies. According to Arnold (2008), Fed has several tools at it disposal that it uses in the monetary polices. These are; the open market operations which involve buying and selling U.S government securities in the financial markets. Further the bank is charged with the responsibility of determining the required reserve ratio. This ratio is given to the commercial banks dictating the minimum amounts that they should hold in to their accounts as deposits and for lending. Finally the Fed sets the discount rates putting in to consideration the overall market rates s well as desired effect on borrowing that the Fed seeks to achieve. In addition to these three major roles, as a bank, the Federal Reserve Bank can play the roles played by the commercial banks as the rules are not entirely prohibitive as far as this duty is concerned.

Secondly, out of the twenty-five stockholders of the Bank, five of these were government owned. Thus showing support of the Bank by subscribing to one-fifth of its $35 million (Schlesinger 74). In addition, among the Bank’s functions was to hold all government money, sell all government bonds, and make commercial loans. However, no voters could dictate its policies or reign in its power, due to its privately owned status (Roughshod 2). Finally, the government also allowed bank notes to be used as payment for taxes.

The Federal Reserve plays a vital role as the intermediary in clearing and settling interbank payments to assure that the millions of transactions performed each day are processed safely and efficiently. Acting as the “Banker’s Bank”, the Federal Reserve Banks provide various services to the nation’s banks such as check processing, electronic transfers, and ensuring there is enough cash in circulation to meet public demand. As fiscal agent for the U.S. government, the Reserve Banks pay Treasury checks and issue, transfer, and redeem U.S. government

That is to say, the Federal Reserve's job is to maintain an accurate banking structure and a healthy economy. To fulfill its mission, the Federal Reserve presents itself as the financial institutions bank, the ministry's treasury, the director of monetary organizations and the nation's currency

The Board of Governors, is an organization of the government that reports to and is specifically responsible to report Congress (see figure 1.2), gives general direction to the System and administers the 12 Reserve Banks.

The Federal Reserve Board is a regulating body that determines how United States will lend money by coordinating the banks and defining the value of the dollar. A Governor on the Federal Reserve board communicates with the twelve region 's bank presidents, economic analysts, and their regional directors, and collectively define the dollar by selling long-term and short-term bonds that advance a percentage of the worth. Once an agreement has been made upon fraction percentage, banks are required to maintain that stated amount in a Federal Reserve vault, or the bank’s vault. The Federal Reserve loans temporary funds to the banks that do not meet the reserve requirement in the form of a short term loan, usually overnight. A large amount of the Federal Reserve Board’s time is spent discussing fractions of a percent on specific money-related rates which steers the economy.

The Federal Reserve System has three branches: the Board of Governors, The Federal Open Market Committee, and Reserve Banks. The Federal Reserve System (Fed) supplies and regulates America’s money to all the banks. The Board of Governors is the main authority of the three branches of the Fed, and it supervises other banks. The Federal Open Market Committee is the most prominent policymaker of the three branches and regulates the supply of money in the economy. Federal Reserve Banks serve other banks, this is why they are called banker’s banks. There are twelve Federal Reserve Banks which represent different states and these “districts” share data for monetary policies. The future role of monetary policy is vital

There are twelve regional bank Federal Reserve Banks located in major cities throughout the nation. The federal government sets the salaries of the board’s seven governors. National chartered commercial banks are required to hold stock in the Federal Reserve Bank of their region, which entitles them to elect some of their board members. The Federal Reserve System has both private and public components to serve the interest of the public and private banks. It’s unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used. The U.S Government received all the system’s annual profit, after a statutory dividend of 6% on member banks’ capital investment is paid, and an account surplus is maintained. In 2015, the Federal Reserve made a profit of $100.2 billion and transferred $97.7 billion to the U.S Treasury. The motivation for creating the Federal Reserve System was to address banking panics. The Federal Reserve System was also created to serve as the central bank for the United States. Also the Federal Reserve System was to spike a balance between private interests of banks and the centralized responsibility of

The Federal Reserve was established as the Central bank of the United States in late 1913. Commonly referred to as “the Fed,” it is responsible for managing currency, money supply, and interest rates (Lecture, 10/6). While the bank is given much autonomy over its actions, it is not independent from the US government in that the legislature is responsible for allowing the Federal Reserve to act freely, and elected officials appoint central bankers. These are two primary mechanisms for keeping the Fed in check, insuring that it is acting in the nation’s best interest (O, 286). Countries with central banks that are independent from their governments tend

The banking industry has over the years evolved from simple to large and complex organization. They have grown from one street building into having multiple branches some of which are international. Their clients range from individual and institutions to governments and other banks. Banks do not manufacture physical things. Their work is simply services for money (Koch & MacDonald 2010). Such services include storing, lending and managing money. All people and institutions, as well as governments, need money to operate accordingly.

According to Dye & MacManus (2012), this the organization of county government in which a chief executive officer is elected separately from the county commission. The voters will comprise the base of this structure (Dye & MacManus, 2012, P. 343). The voters will elect the twelve District Commissioners, county executive officer (CEO), county administrator officer (CAO), auditor, and the district attorney (Dye & MacManus, 2012, P. 343.) The elections will use a combination electoral system. The elections will for the CEO, CEA, and the district commissioners will be offset so neither election will be in the same year as the other. These eighteen positions will comprise a board of officers who by a majority vote will decide everything pertaining to the

There are twelve regional banks all throughout the United States. Some locations include Kansas City, St. Louis, Atlanta, and New York. New York is the biggest of the banks and is the only bank responsible for handling gold. The Federal Reserve Banks are not only public and but its part private as well. “They are charted federally, and they are private, nonprofit organizations owned by commercial banks within their district” (Cecchetti & Schoenholtz, 2015, pg. 424). Since the banks are both private and public, their own leaders from each side monitor them. Each bank has a board of directors made up of nine people. Of the nine members, only the board of governors can vote on three members. The other six are picked to represent commercial banks and the remaining three represent the public’s interest. This is done so each of the members represents different groups, but all have want economic stability. Each of the banks also has a president that elected by members of the board. The term of each president is only five years. The president is in charge of many things but one major job is to make sure the responsibilities of the bank are performed. The Federal Reserve is responsible for being the government’s bank and the banker’s bank. For the government, the banks purposes are to create money and destroy old, damaged money, managing the treasury’s bank account as well keeping track of what its

This project will explain in detail the structure of those organisations,list the documents required to set up every single one of them and will also mention about financial accounts needed to inform stakeholders about the business activities.

As NGO the organizational structure is different than other types of organization it has authorized committees as illustrated in Figure1, it consists of 4 main board and each board has specific functions.

According to the above information , there are given improvements in the new Organizational Chart :